Binance’s Changpeng Zhao Predicts Next Bitcoin Price Rally
The Binance founder and CEO believes that the next Bitcoin bullish momentum is on the horizon as the industry prepares for another price uptrend following last year’s bearish trend. Revealing his forecast on Bitcoin’s next bullish trend, Changpeng Zhao (CZ) explained that Bitcoin’s upcoming price surge follows a four-year cycle, just as previously.
CZ Speaks On Upcoming Bullish Trend
While speaking during a recent interactive Twitter session, the Binance boss delved into various topics, including BlackRock’s move to offer Bitcoin ETF and the ongoing regulatory measures affecting the exchange. The Binance executive also explained the historical pattern of Bitcoin’s price, characterized by four-year cycles of upward push, and predicted that this trend would persist for the foreseeable future.
While acknowledging the limitations of predicting future events, CZ highlighted the significance of the upcoming Bitcoin halving event in 2024. He further noted that 2025 would be the most probable year for crypto investors as it would be the next bull market.
He added that the year after, a bull rally usually follows a Bitcoin halving. CZ was asked about his opinion of BlackRock’s recent foray into the market for a spot Bitcoin ETF product, and the CEO expressed optimism about it, describing it as a beneficial development for the crypto industry.
Following BlackRock’s June 15 filing for the Bitcoin ETF application, several industry analysts have voiced their concerns about the asset manager’s move. They highlight the potential contradiction between the intentions of major traditional finance firms and the fundamental principles of Bitcoin as a decentralized monetary network.
They also believe that by allowing traditional fund managers to offer Bitcoin ETF to clients, the principles under which the asset is created have been defeated. According to Zhao, the increased institutional foray into the crypto space and the upcoming Bitcoin halving events are why Binance plans to improve its platform, as it anticipates higher trading volumes.
Bitcoin Miners Record $184 Million In Transaction Fees
Meanwhile, Bitcoin miners experienced a profitable second quarter of 2023, reportedly raking in $184 million from transaction fees. According to the latest Coin Metrics report, the $184 million payout represents a substantial surge of over 270% compared to the figures recorded in Q1 2023.
Furthermore, this development marks the first quarter since Q2 2021, that Bitcoin miners’ payouts have surpassed the $100 million milestone. Thus, the recent data indicates a notable growth in revenue for Bitcoin miners this past quarter.
Bitcoin miners are rewarded with transaction fees after validating a new block. However, their earnings depend on data volume and user demand for block space.
According to Coin Metrics, the increase in transaction fees can be attributed to the recent spike in Bitcoin’s price and the introduction of BRC-20, which has bolstered overall revenues. The BRC-20 is a new token standard launched on the Bitcoin network in March, facilitating the creation and transfer of fungible tokens like Ordinals inscriptions.
This development has further contributed to the rise in transaction fees observed on the network. It is worth noting that transaction fees accounted for 7.7% of the overall earnings for miners, which totaled $2.4 billion, during the quarter.
Most of these earnings are generated from the Bitcoin block rewards, whereby miners receive 6.25 BTC for each block they validate successfully. However, this reward is expected to drop to 3.125 BTC following the network’s next halving, scheduled for around May 2024.
Thus, the impending adjustment signifies a significant change in the mining landscape and the potential impact on miners’ future earnings. Coin Metrics report further stated that there was another cause of celebration among Bitcoin miners.
In May 2023, the Bitcoin mining industry scored a notable victory by successfully blocking the Digital Asset Mining Energy tax proposed by the administration of United States President Joe Biden. Observers believe this development was a massive relief for miners, reinforcing their optimism and contributing to a more favorable operating environment.
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